Jackie O Sues ARN Media for $85M Over Unfair Dismissal After On-Air Row

Radio presenter Jackie ‘O’ Henderson is suing ARN Media for approximately $85 million in Federal Court, claiming she was unlawfully dismissed after refusing to continue working with co-host Kyle Sandilands. An on-air row on 20 February, where Sandilands called Henderson “off with the fairies”, prompted her to tell management she could no longer work with him. Both presenters were fired in March from their $100 million decade-long contracts. Henderson alleges she exercised a protected workplace right by complaining about bullying, while ARN argues she misused that right.

What sparked the legal dispute

On 20 February 2026, Sandilands and Henderson had a heated on-air exchange during their KIIS FM show. Sandilands made comments Henderson found offensive, prompting her to tell ARN Media management she could no longer work with him. ARN’s chief people officer wrote in an internal email: “What happened on air 15 minutes ago between Kyle and Jackie is not okay. There is serious bullying and harassment in the workplace.” Both presenters were terminated in March, ending their 27-year on-air partnership.

Henderson’s $85 million claim

Henderson claims ARN unlawfully sacked her after she exercised a workplace right by complaining about bullying. She is seeking the remainder of her contract, estimated at $85 million. Court documents revealed that a psychiatrist’s affidavit claims Henderson suffered post-traumatic stress disorder as a result of her time on air with Sandilands. Henderson’s lawyer Vanja Bulut told the Federal Court that ARN rejected alternative arrangements without properly consulting her client.

ARN’s rejected alternatives and counterclaim

ARN offered Henderson a $2 million annual role hosting an afternoon drive show, one-fifth of her previous $10 million yearly earnings. Court documents revealed that executives had canvassed replacing Sandilands with Karl Stefanovic, but abandoned that plan without explanation and never informed Henderson. ARN filed a counterclaim alleging Henderson misused her workplace right and is seeking damages for breach of contract, lost profits, and advertising revenue. The company also claims Henderson withdrew a September 2025 complaint after arranging for exorcists to clear Sandilands’ “demons”.

Settlement and trial timeline

Sandilands settled his own unfair dismissal claim against ARN for $12 million in June 2026 and has since launched a paid online show. He publicly expressed regret over the fallout on 28 August, saying he could not stop thinking about Henderson’s allegations. Henderson’s substantive trial is scheduled for October 2026. The case centres on whether Henderson’s complaint was made in good faith and whether ARN acted lawfully in terminating her contract.

Final Thoughts

The $85 million dispute hinges on whether Henderson exercised a protected workplace right or misused it. With trial set for October, the outcome will clarify Australian employers’ obligations when handling bullying complaints and whether alternative job offers must be genuinely comparable to the original role.

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